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Civic Attitudes and the Design of Labour Market Institutions: Which Countries Can Implement the Danish Flexicurity Model?

  • Yann Algan

    (Université Paris-Est)

  • Pierre Cahuc

    (Department of Economics)

We argue that the efficiency of the Danish flexicurity Model, which combines high unemployment benefits with low job protection and high participation rate, relies on strong public-spiritedness. We also argue that Continental and Mediterranean European countries are unlikely to be able to implement the Danish Model because the lack of public-spiritedness of their citizens raises moral hazard issues which hinder the implementation of efficient public unemployment insurance.

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Paper provided by Sciences Po in its series Sciences Po publications with number 5489.

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Date of creation: Feb 2006
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Handle: RePEc:spo:wpmain:info:hdl:2441/8811
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